Business leaders more optimistic about economy than year ago, survey shows

Jun. 27, 2013

Written by

Eva Botkin-Kowacki

The Tennessean

Business leaders in the Southeast are feeling more optimistic about the economy, according to a new survey.

Business leaders are significantly more optimistic about the finances of their company than one year ago, according to a new survey by SunTrust Banks Inc.

In the survey, 65 percent of leaders of companies that have an annual revenue of $10 million to $100 million said their companies are healthier financially than last year. This is up from 38 percent for the same question in 2012. Similarly, 62 percent of small businesses have better finances this year, their leaders said.

SunTrust surveyed nearly 1,700 business clients for the survey. The response was split with 850 small businesses and 826 midsize companies.

“Seeing how many business owners are expressing this confidence is a pretty significant and dramatic change from one year ago,” said Tom Kuntz, a commercial and business banking executive with SunTrust.

Kuntz said a main focus for respondents was expanding technology. Fifty-nine percent of the midsize businesses are investing in new technology as one of their top actions to achieve their goals.

“There’s an ongoing quest for efficiency,” Kuntz said. Companies’ priorities, according to the survey, are increasing revenue and profitability, reducing expenses, expanding market share and increasing customer satisfaction. This survey shows “there’s optimism in the future,” Kuntz said, and “tremendous opportunities” for companies to meet goals in these areas.

Lighting the way

Fifty-one percent of midsize companies are also focused on managing cash flow more effectively, 49 percent are expanding into new domestic markets, and 48 percent are working to hire or retain full-time employees to meet expansion goals.

Kuntz said SunTrust conducted the survey to better understand businesses’ needs, focuses and how the bank can help support the companies. “The reason we are here is to light the way to financial well-being,” he said. The survey shows, he added, “that there’s a place for the bank in helping them get there.”

The leaders who responded to the survey were all sole or major decision-makers for their company.